Up to $6 million would be sucked out of the Woonona economy, leaving small businesses to suffer, if a proposed supermarket was built in Bulli, according to the Woonona Chamber of Commerce.
Chamber president Graham Sturgiss said he was worried the development application lodged for a Woolworths at Bulli was dismissive of the impact on Woonona businesses.
"That was a little disappointing," Mr Sturgiss said.
Aldi joins Woolies in northern suburbs"It (suggested) they could take $6 million out of the Woonona shopping centre and it would have no impact. I think we will suffer."
The DA proposed a Woolworths be built on the corner of Molloy St and the Princes Hwy.
Plans for an Aldi supermarket in Woonona also have been unveiled in recent weeks, potentially adding further pressure to established businesses.
The Woolworths DA said the proposed supermarket would have the greatest impact on Woonona stores, redirecting business worth up to $6 million during its first year of operation.
In a submission to Wollongong City Council opposing the DA, the chamber noted the loss of business would lead to job cuts, a reduction in customers visiting Woonona shops and the gradual decline of the village shopping centre.
"To highlight our case, we have contacted Franklins Woonona and have confirmed that the average spend per customer is $30," the submission said.
"If the assumptions are correct ... this would relate a loss of 200,000 customers per year from our shopping centre."
Mr Sturgiss said the chamber could not see a business case for the Woolworths being built.
"You don't see long queues at Franklins Woonona and Coles Corrimal," he said.
"Establishing another supermarket would be transferring business from one to another."
Traffic congestion and heritage controls were also raised in the chamber's submission.
Mr Stugiss said if the Woolworths went ahead, there would be more traffic congestion at Bulli with the addition of two sets of traffic lights once the Northern Distributor extension opened.
The submission noted that heritage controls in Bulli, which other businesses had adhered to, did not seem to apply to the proposed Woolworths.
"Given that this development is in close proximity to the Bulli Conservation Area, there has been no consideration for the design to be sympathetic to the existing streetscape."
The exhibition period for the DA closed last Friday, by which time the council had received seven submissions - one in favour and six against.
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